The true price of an emergency asset freeze

An emergency asset freeze can save a fraud claim, but the filing fee is the least of it. Price the bond, the candor duty and the hearing first.

An asset freeze stops a defendant from moving money while your claim is decided. Courts grant it quickly when the risk of dissipation is real, but the order comes with obligations that cost more than the motion itself.

The first is the bond. A court that freezes assets without a full hearing will usually require security against the harm the order causes if it later proves wrong. That figure can be significant, and it has to be posted fast.

The second is candor. Because the defendant is not in the room, you must tell the judge the facts that hurt you as well as the facts that help. Miss one, and the order can be dissolved and costs awarded against you.

What it actually costs

1. The motionDrafting the sworn record, usually over one or two days of intense work.
2. The bondSecurity set by the court, often a percentage of the frozen sum.
3. The return hearingA full hearing within days, where the order must be defended on the merits.

When it is worth it

A freeze makes sense when there is a real risk the money will disappear before judgment and a clear enough claim to survive the return hearing. Without both, the cost usually outweighs the benefit.

We often advise clients to wait a week, gather two more documents, and file a stronger motion rather than a fast weak one.

The motion is the cheap part. The bond and the duty of candor are where the real cost sits.

Questions clients ask